New Delhi | Jagran Business Desk: A majority of industry experts and MPs on Monday (November 15), spoke against banning cryptocurrency but stressed the need for regulation at a parliamentary panel meeting on issues related to cryptofinance.

The first such meeting called by the Parliamentary Standing Committee, under the chairmanship of BJP leader Jayant Sinha, saw the participation of representatives of crypto exchanges, block chain, Crypto Assets Council (BACC), etc. However, none of the stakeholders were able to decide on a regulator for the rapidly growing crypto industry, despite agreeing that a regulatory mechanism was necessary.

"There was a consensus that a regulatory mechanism should be put in place to regulate cryptocurrency. Industry associations and stakeholders were not clear as to who should be the regulator," a source told news agency ANI.

In addition, Sinha said that the committee called “stakeholders from across the industry including operators of major exchanges, members of CII as well as academics from the Indian Institute of Management (IIM) Ahmedabad, who have done a very thorough study on the crypto finance.”

On the other hand, the MPs on the panel raised concerns about the security of investors' money and flagged the appearance of full-page advertisements in national dailies promoting cryptocurrencies, other sources added.

Furthermore, they also expressed concern over ads in newspapers promoting cryptocurrency. They said there is a need to ensure the safety of investments in various cryptocurrencies made by people.

For their next step, the committee wants government officials to appear before it and address their remaining concerns.

Cryptocurrency is a digital currency and is not issued by any central bank, and therefore has no sovereign backing. India presently does not have any legal framework to regulate cryptocurrency.

Meanwhile, earlier on November 13, Prime Minister Narendra Modi also chaired a meeting on cryptocurrencies and other related issues. The Reserve Bank of India (RBI), finance ministry, and home ministry have been holding deliberations on cryptocurrency, which has been rapidly gaining ground in India as an investment avenue.

Posted By: Subhasish Dutta